Final answer:
Low-income consumers would be charged the lowest price in price discrimination. This makes sense as they are more price-sensitive, whereas high-income consumers can be charged higher prices. In perfect price discrimination, no consumer surplus exists, with each paying exactly their product valuation.
Step-by-step explanation:
If a firm wanted to implement price discrimination, the consumer group that would be charged the lowest price would most likely be C) Low-income consumers. This is because price discrimination involves charging different prices to different consumers based on their willingness or ability to pay.
Typically, low-income consumers have less disposable income and are more price-sensitive, which means that in order to sell to this group, the firm must offer a lower price. In contrast, high-income consumers are generally less price-sensitive and can be charged higher prices.
The scenario described as perfect price discrimination is one where the monopolist produces more output—similar to that of a perfectly competitive industry. However, each consumer pays the exact amount they value the product, leaving no consumer surplus and therefore allowing the monopolist to earn maximum profits. Thus, in a situation of perfect price discrimination, prices are not uniform across all consumers.